UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC 20549

                               FORM 10-QSB
   QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934 ACT
                         REPORTING REQUIREMENTS

[X]   QUARTERLY  REPORT  UNDER  SECTION 13 OR  15(d)  OF  THE  SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001.

[   ]  TRANSITION  REPORT PURSUANT TO SECTION 13 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ________________to ___________________

                    Commission File Number: 000-29983






                    GLOBAL INDUSTRIAL SERVICES, INC.
         (Exact name of registrant as specified in its charter)







Nevada                000-29983                   98-0203485
(State of             (Commission           (I.R.S. Employer
organization)         File Number)       Identification No.)

14th Floor, 609 Granville Street, Vancouver, B.C. Canada V6Y 1G5
(Address of principal executive offices)

Registrant's telephone number, including area code (604) 683-8358

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months and (2)
has been subject to such filing requirements for the past 90 days.  Yes X

There are 17,731,097 shares of common stock issued and outstanding as of
August 16, 2001.

                     PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

          Unaudited  financial statements for the quarter ended June  30,
            2001.

                     GLOBAL INDUSTRIAL SERVICES INC.
                       CONSOLIDATED BALANCE SHEETS

<Table>

                                   <c>                <c>
                                          June 30,        December 31,
               ASSETS                       2001              2000
CURRENT ASSETS                           (Unaudited)

  Cash and cash equivalents                $  105,202       $   119,376
  Accounts receivable                         824,783           872,661
  Prepaid expenses                            114,058           111,206
  Inventory                                   214,970           185,801
  Due From Related Party                      119,370                 -
                                        -------------     -------------
    Total Current Assets                    1,378,383         1,289,044

PROPERTY AND EQUIPMENT                      3,116,497         3,089,461

OTHER ASSETS                                  105,395           106,667

GOODWILL                                      781,477           880,041
                                        -------------     -------------
TOTAL ASSETS                             $  5,381,752      $  5,365,213
                                        =============     =============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Cash overdraft                         $   108,744         $  26,565
  Accounts payable                            594,399           736,335
  Payable on investments                    1,174,300         1,314,300
  Current potion of long term debt            554,967           511,581
  Deferred revenue                            152,439            36,079
  Advances payable - related party             35,000         1,050,323
                                        -------------     -------------
    Total current liabilities               2,616,849         3,675,183

Debenture payable                              78,750                 -

Long term debt, less current portion          776,944           923,467
                                        -------------     -------------
    Total liabilities                       3,475,543         4,598,650
                                        -------------     -------------

STOCKHOLDERS' EQUITY
  Common stock, $.001 par value;
   50,000,000 shares authorized;
   20,186,097 and 9,414,346 shares
   issued and outstanding                      20,187             9,415
  Additional paid -in capital               5,446,393         1,608,490
  Foreign currency translation           (    10,961)        (   4,867)
adjustment
  Common stock subscription                         -                 -
  Accumulated deficit                     (3,549,410)         (846,475)
                                        -------------     -------------
    Total Stockholders' Equity              1,906,209           766,563
                                        -------------     -------------
  TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                      $ 5,381,752       $ 5,365,213
                                        =============     =============
</Table>

                              - 1 -
                         GLOBAL INDUSTRIAL SERVICES INC.
                        STATEMENT OF STOCKHOLDERS' EQUITY

<Table>

                           <c>           <c>          <c>          <c>           <C>            <c>            <c>
                                    Common Stock         Additional      Common       Currency
                                    ------------           Paid-in       Stock      Translation   Accumulated
                                 Shares        Amount      Capital    Subscription   Adjustment     Deficit        Total
                                                                           s
                                 -------      -------      -------      --------     ----------    ----------    ---------

Balance at December 31, 1999     4,020,000     $  4,020   $  33,934      $  90,000       $    -    $ ( 52,196)     $  75,758

  Sale of common stock             210,000          210     159,790              -            -              -       160,000

  Issuance of stock options              -            -     125,000              -            -              -       125,000

  Issuance of shares               400,000          400      89,600       (90,000)            -              -             -

  Issuance of shares
   for acquisitions              4,688,538        4,689   1,056,550              -            -              -     1,061,239

  Issuance of shares
   in settlement of payables        95,808           96     143,616              -            -              -       143,712

  Foreign currency
   translation adjustment                -            -           -              -      (4,867)              -       (4,867)

  Net loss                               -            -           -              -            -     ( 794,279)    ( 794,279)
                              ------------    --------- -----------    -----------  -----------   ------------   -----------

Balance at December 31, 2000     9,414,346        9,415   1,608,490              -      (4,867)     ( 846,475)       766,563

  Sale of common stock             206,667          207      74,793              -            -              -        75,000

  Issuance of shares as part
   of option agreement              25,000           25      16,225              -            -              -        16,250

  Issuance of shares
   for services                  2,357,000        2,357   1,048,643              -            -              -     1,051,000

  Issuance of shares
   for compensation              2,500,000        2,500     974,000              -            -              -       976,500

  Issuance of shares in
   settlement of payables        4,849,751        4,850   1,475,075              -            -              -     1,479,925

  Foreign currency
   translation adjustment                -            -           -              -     (22,540)              -      (22,540)

  Net loss                               -            -           -              -            -    (2,006,445)   (2,006,445)
                              ------------    --------- -----------    -----------  -----------   ------------   -----------

Balance at March 31, 2001       19,352,764       19,354   5,197,226              -     (27,407)    (2,852,920)     2,336,253

  Issuance of shares
   for services                    833,333          833     224,167              -            -              -       225,000

  Foreign currency
   translation adjustment                -            -           -              -       16,446              -        16,446

  Net loss                               -            -           -              -            -      (696,490)     (696,490)

  Convertible debenture
   beneficial conversion
   feature                               -            -      25,000              -            -              -        25,000
                              ------------    --------- -----------    -----------  -----------   ------------   -----------

Balance at June 30, 2001        20,186,097       20,187   5,446,393              -     (10,961)    (3,549,410)     1,906,209
                              ============    ========= ===========    ===========  ===========   ============   ===========
</Table>
                                      - 2 -
                         GLOBAL INDUSTRIAL SERVICES INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<Table>

                                    <c>                <c>              <c>               <c>
                                         For the Three    For the Three     For the Six       For the Six
                                          Months Ended     Months Ended    Months Ended       Months Ended
                                         June 30, 2001    June 30, 2000    June 30, 2001     June 30, 2000
                                          -----------      ------------     -----------       -----------
Revenue
  Drilling Services                          $ 873,681        $  847,853        $1,558,314        $  847,853
  Engineering Services                         719,684           796,300         1,327,375           796,300
                                         -------------     -------------   ---------------    --------------
                                             1,593,365         1,644,153         2,885,689         1,644,153

Operating Costs
  Drilling Services                            514,422           461,239           986,584           461,239
  Engineering Services                         409,598           425,753           725,721           425,753
                                         -------------     -------------   ---------------    --------------
                                               924,020           886,992         1,712,305           886,992

Operating Profit                               669,345           757,161         1,173,384           757,161

General and administrative expense           1,304,149           856,583         3,753,923           860,583
Amortization of goodwill                        46,386            32,855            97,246            32,855
Impairment adjustment                                -           225,000                 -           225,000
Interest expense                                27,574            28,367            52,421            28,367
Interest Income                               (12,274)           (1,766)          (27,271)           (1,766)
                                         -------------     -------------   ---------------    --------------

Loss from operations before income           (696,490)         (383,878)       (2,702,935)        ( 387,878)
taxes

Provision for income taxes                           -                 -                 -                 -
                                         -------------     -------------   ---------------    --------------
Net loss                                   $ (692,339)       $ (383,878)      $(2,702,935)       $( 387,878)
                                         =============     =============   ===============    ==============
Net loss per common share - basic          $    (0.04)       $    (0.05)      $     (0.17)       $    (0.05)
  And diluted                            =============     =============   ===============    ==============
Weighted average number of common
shares
 Outstanding - basic and diluted            19,769,431         7,556,464        15,962,180         7,556,464
                                         =============     =============   ===============    ==============
</Table>

                                      - 3 -
                         GLOBAL INDUSTRIAL SERVICES INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (UNAUDITED)

<Table>

                                              <c>                <c>
                                                    For the six       For the six
                                                       months           months
                                                   ended June 30,   ended June 30,
                                                        2001             2000
                                                    -----------       -----------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                          $ (2,702,935)       $ ( 387,878)
  Adjustments to reconcile net loss to
   net cash (used in) operating activities:
    Depreciation and amortization                         198,525            79,357
    Bad debt                                               73,589                 -
    Non-cash interest expense                               3,750                 -
    Write off of property and equipment                     8,000                 -
    Shares issued for option agreement                     16,250                 -
    Shares issued for services and compensation         2,252,500                 -
    Impairment of investment                                    -           225,000
    Changes in assets and liabilities

     Accounts receivable                                 (25,711)           228,780
     Inventory                                           (29,169)        (  27,396)
     Prepaid Expenses                                    (22,308)                 -
     Other assets                                           1,272            15,174
     Deferred revenue                                     116,360         (275,611)
     Accounts payable                                     178,136         (    923)
                                                   --------------      ------------
NET CASH PROVIDED BY (USED IN)
  OPERATING ACTIVITIES                                    112,875        (  18,497)
                                                   --------------      ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Property and equipment                                (134,997)            81,797
  Net cash in acquisitions                                      -        (  44,288)
                                                   --------------      ------------
NET CASH USED IN INVESTING ACTIVITIES                   (134,997)            37,509
                                                   --------------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Cash overdraft                                           82,179                 -
  Sale of common stock                                     75,000            75,000
   Convertible debenture proceeds                         100,000                 -
  Note payable repayments                               (103,137)          (91,530)
   Payable on investments                               (140,000)                 -
  Investments in subsidiaries                                   -         (615,350)
  Advances from related party                                   -           744,692
                                                   --------------      ------------
NET CASH PROVIDED (USED) BY FINANCING                      14,042           112,812
ACTIVITIES
                                                   --------------      ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                   (6,094)         (     82)
                                                   --------------      ------------
NET (DECREASE) INCREASE IN CASH                         ( 14,174)           131,742

Cash  - beginning                                         119,376               215
                                                   --------------      ------------
Cash - ending                                          $  105,202        $  131,957
                                                   ==============      ============
</Table>
The accompanying notes are an integral part of the financial statements.

                                      - 4 -

                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          Interim Financial Information
          The accompanying unaudited interim financial statements
          have  been prepared by the Company, in accordance  with
          generally  accepted accounting principles  pursuant  to
          Regulation   S-B  of  the  Securities   and   Exchanges
          Commission.     Certain   information   and    footnote
          disclosures  normally  included  in  audited  financial
          statements   prepared  in  accordance  with   generally
          accepted  accounting principles have been condensed  or
          omitted.     Accordingly,   these   interim   financial
          statements  should  be  read in  conjunction  with  the
          Company's  financial statements and  related  notes  as
          contained  in  Form 10-KSB for the year ended  December
          31,  2000.   In the opinion of management, the  interim
          financial statements reflect all adjustments, including
          normal   recurring  adjustments,  necessary  for   fair
          presentation  of  the interim periods  presented.   The
          results of operations for the six months ended June 30,
          2001  are  not  necessarily indicative  of  results  of
          operations to be expected for the full year.

          Basis of Presentation
         The accompanying consolidated financial statements
         include the accounts of Global Industrial Services Inc.
         and its wholly-owned subsidiaries

          All  significant intercompany accounts and transactions
         have been eliminated in consolidation.

          As  reflected in the accompanying financial statements,
         the Company has had recurring losses from operations,  a
         negative  cash  flow  from  operations  and  a  negative
         working capital.  These matters raise substantial  doubt
         about  the  Company's  ability to continue  as  a  going
         concern.

          In  view  of  the  matters described in  the  preceding
         paragraph,  recoverability of a  major  portion  of  the
         recorded   asset  amounts  shown  in  the   accompanying
         consolidated  balance sheet is dependent upon  continued
         operations of the Company, which, in turn, is  dependent
         upon  the Company's ability to continue to raise capital
         and  generate positive cash flows from operations.   The
         consolidated  financial statements do  not  include  any
         adjustments   relating   to   the   recoverability   and
         classification of recorded asset amounts or amounts  and
         classifications of liabilities that might  be  necessary
         should the Company be unable to continue its existence.

          Management  plans to take the following steps  that  it
         believes will be sufficient to provide the Company  with
         the ability to continue in existence:

         a)    Raise  additional  capital  through  the  sale  of
         capital stock
         b)    Acquire additional operating companies through the
         issuance of capital stock and cash

                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED JUNE 30, 2001

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Lines of Business
          The  Company, through its subsidiary Stothert, provides
          engineering,   construction  and   project   management
          services   for   the  pulp  and  paper  industry   with
          particular  focus  on recausticizing  plants  and  lime
          kilns.   Stothert  provides a full  range  of  services
          including  feasibility  studies, detailed  engineering,
          due   diligence,   mill  audits,   project   management
          services,  turnkey supply and construction,  operations
          and   training   services,   and   project   financing.
          Stothert's business is conducted in Vancouver,  Canada.
          The Company's subsidiary AK Drilling operates primarily
          in the mineral exploration and water drilling industry.
          Its  offices are located in Montana.  AK Drilling  also
          conducts operations in Peru, through its subsidiary  AK
          International, S.A..

NOTE 2 -  DUE FROM RELATED COMPANY

          Advances to and from a related company are non-interest
          bearing,  unsecured  and  due on  demand.  The  related
          company is controlled by one of the stockholders of the
          Company.

NOTE 3 - ACQUISITIONS

          During the second quarter of 2000, Global completed the
          acquisition  of  AK Drilling, Inc. and Stothert  Group,
          Inc.  Both acquisitions are recorded using the purchase
          method  of  accounting  under  the  provisions  of  APB
          Opinion No. 16.

          On April 6, 2000, the Company completed its acquisition
          of AK Drilling, Inc., a company engaged in the contract
          drilling  for  minerals and water.   According  to  the
          terms of this acquisition, the Company acquired all  of
          the  capital  stock of AK Drilling, Inc.  for  a  total
          consideration  of  $1,150,000 in  cash  plus  1,000,000
          shares  of common stock of the Company valued at  $0.64
          per  share  (fair value at the acquisition  date).   At
          June  30,  2001,  $628,000 of the cash portion  of  the
          purchase price remained unpaid.

          On   April   26,   2000,  the  Company  completed   its
          acquisition  of  Stothert Group, Inc.,  an  engineering
          firm.  According to the terms of this acquisition,  the
          Company  acquired all of the capital stock of  Stothert
          Group,  Inc.  for a total consideration of $814,300  in
          cash plus 227,000 shares of common stock of the Company
          valued   at  $0.88  per  share  (fair  value   at   the
          acquisition date).  At June 30,  2001, $546,300 of  the
          cash portion of the purchase price remained unpaid.


                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED JUNE 30, 2001

NOTE 4 -  ACQUISITIONS (Continued)

         The estimated fair value of assets acquired and
         liabilities assumed is summarized as follows:
                                       AK            Stothert
                                    Drilling          Group
                                   ---------        ----------

          Cash                     $(   80,367)          $36,729
          Accounts receivable           436,710          997,265
          Inventory                     101,432                -
          Fixed assets                2,667,132          109,660
          Other receivables               5,511                -
          Other assets                   43,093          117,414
          Accounts payable         (   122,351)        (856,816)
          Taxes payable            (    63,125)                -
          Notes payable             (1,230,909)          (3,322)
          Deferred revenue                    -        (373,533)
          Goodwill                       30,374          985,642
                                   ------------       ----------
                                     $1,787,500       $1,013,039
                                   ============       ==========

         Goodwill  recorded  through acquisitions  is  $1,016,016
         and  is  being  amortized over five years.  Amortization
         expense recorded in the statement of operations for  the
         six  months  ended  June  30, 2001  totals  $97,246  and
         $46,386 for the quarter (six months ended June 30,  2000
         -  $32,855  and  the  quarter  ended  June  30,  2000  -
         $32,855).

         The  operations  of  the  acquired  entities  have  been
         included  in the statement of operations from the  dates
         of acquisition.

         Additionally,  the  Company  issued  95,808  shares   of
         stock,  valued  at $143,712, to former  shareholders  of
         Stothert   to   settle  accounts  payable  and   accrued
         expenses.

NOTE 5 -  PROPERTY AND EQUIPMENT

         Depreciation  expense  recorded  in  the  statement   of
         operations  for the six months ended June 30,  2001  was
         $101,279  and $47,781 for the quarter (six months  ended
         June  30, 2000 - $46,502 and the quarter ended June  30,
         2000 - $46,371).
                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED JUNE 30, 2001

NOTE 6 -  LONG-TERM DEBT

          On June 22, 2001, the Company issued a $100,000
          convertible debenture together with a premium of
          $25,000. The Company must provide a redemption notice
          to the holder by midnight of the sixtieth day after the
          issuance date and repayment of the principal and the
          premium within five days after that.  If there is no
          redemption by the sixtieth day, the premium will be due
          on the sixty first day after the issuance date.  At any
          time after the sixty first day and before the second
          anniversary date of the issuance date, the holder may
          opt to convert the debenture to common stock at a
          conversion price which is the lesser of (a) 110% of the
          closing bid price for Company's common stock on the
          trading day immediately preceding the Issuance Date, or
          (b) 80% of the lowest closing bid price for Company's
          common stock during the five (5) trading days prior to
          and including the conversion date.  The premium is
          amortized over 65 days, being the redemption period
          plus the payment period, and the beneficial conversion
          feature embedded is amortized over the life of the
          instrument.

NOTE 7 -  SUPPLEMENTAL CASH FLOW DISCLOSURE

                                   For the six      For the six
                                     months           months
                                 ended June 30,   ended June 30,
                                      2001             2000

          Income taxes paid          $        -      $        -
          Interest received              26,609           1,766
          Interest paid                  44,921           3,536

NOTE 8 -  COMMITMENTS AND CONTINGENCIES

         Stothert has issued standby letters of credit totaling
         $239,600 relating to contracts that completed in 2000.
         These standby letters of credit reduced to $211,800 on
         June 30, 2001 and will expire on December 31, 2002.

         Stothert is currently involved in a dispute with a
         customer regarding the provision of services. The
         dispute is being handled by Stothert's professional
         liability insurers.  Negotiations are in progress to
         settle the claim within the insurance policy limits.

         Collaterals for loans
         The Company has loans related specifically to AK
         Drilling.  These loans are generally for and secured by
         equipment purchases for items such as drill rigs and
         haul trucks.

         The Company has an operating line with First Citizens
         Bank established in 2000.  The operating line is
         secured by all unsecured inventory, accounts receivable
         and equipment.

                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED JUNE 30, 2001

NOTE 9 -  GEOGRAPHIC AREAS AND INDUSTRY SEGMENTS

          The Company currently operates in two principal
          segments, engineering services and contract drilling.

          The Company's foreign operations are conducted by
          Global and Stothert.

                                Six months ended       Six months ended
                                   June 30, 2001          June 30, 2000
  Revenues from external
  customers
    Drilling                        $  1,558,314             $  847,853
    Engineering                        1,327,375                796,300
                                    ------------            -----------
                                    $  2,885,689              1,644,153
                                    ============            ===========

  Depreciation and
  amortization:
    Drilling                        $     85,644             $   41,250
    Engineering                           15,635                  5,252
                                    ------------            -----------
                                    $     98,633             $   46,502
                                    ============            ===========
  Segment loss before taxes:
    Drilling                       $  ( 124,300)             $   90,155
    Engineering                       ( 109,918)                128,361
    Corporate                        (2,468,717)              (606,394)
                                   -------------            -----------
                                   $ (2,702,935)             $(387,878)







         The  following  geographic area data for trade  revenues
         is  based  on  product or service delivery location  and
         property,  plant,  and equipment is  based  on  physical
         location.

                                Six months ended       Six months ended
                                   June 30, 2001          June 30, 2000
  Revenues from external
  customers:
    United States                   $  1,266,395            $   847,853
    Canada                             1,327,375                796,300
    Peru                                 291,919                      -
                                    ------------          -------------
                                    $  2,885,689               1644,153
                                    ============          =============
  Segment assets:
    United States                   $  3,093,316           $  3,127,800
    Canada                             2,004,748              1,653,960
    Peru                                 283,688                583,453
                                    ------------           ------------
                                    $  5,607,341              5,365,213
                                    ============           ============




ITEM 2.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  AND  PLAN   OF
          OPERATIONS

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
These statements plan for or anticipate the future. Forward-
looking statements include statements about our future business
plans and strategies, statements about our need for working
capital, future revenues, results of operations and most other
statements that are not historical in nature. In this Report,
forward-looking statements are generally identified by the words
"intend", "plan", "believe", "expect", "estimate", "could",
"may", "will", and the like. Investors are cautioned not to put
undue reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulations, the
Company disclaims any intent or obligation to update publicly
these forward-looking statements, whether as a result of new
information, future events or otherwise. Because forward-looking
statements involve future risks and uncertainties, these are
factors that could cause actual results to differ materially from
those expressed or implied.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS
The following discussion should be read in conjunction with the
second quarter consolidated financial statements of the Company
and related notes included elsewhere in this Report for the
period ended June 30, 2001. All statements contained herein
(other than historical facts) including, but not limited to,
statements regarding the Company's future development plans, the
Company's ability to generate cash from its operations, and any
losses related thereto, are based upon current expectations.
These statements are forward looking in nature and involve a
number of risks and uncertainties. Actual results may differ
materially from the anticipated results, or other expectations,
expressed in the Company's forward looking statements. Generally,
the words "anticipate,"  "believe,"  "estimate,"  "expects," and
similar expressions as they relate to the Company and/or its
management, are intended to identify forward-looking statements.
Among the factors that could cause actual results to differ
materially could be the inability of the Company to obtain
additional financing to meet its capital requirements, needs and
general business and economic conditions as well as technological
developments.

The accompanying consolidated financial statements include the
accounts of Global Industrial Services Inc. and its wholly-owned
subsidiaries. Those subsidiaries are Stothert Group, Inc.
("Stothert"), Stothert's subsidiaries, AK Drilling, Inc. ("AK
Drilling"), and AK Drilling's subsidiary.

OVERVIEW

The Company has a limited history of operations and no history of
profitability. It was incorporated as Charger Ventures Inc. on
July 24, 1998 and changed its name to Global Industrial Services
Inc. on March 30, 2000. The Company was organized to engage in
any lawful corporate business, including but not limited to the
business of combining and integrating specialized product/service
providers of the industrial services industry sector. Prior to
December 31, 1999, the Company had no operating history other
than organizational matters. In the second quarter of 2000, the
Company acquired two operating entities and is no longer in the
development stage.

On April 6, 2000 the Company acquired AK Drilling Inc. from its
sole shareholder who remains as the operator of AK Drilling. The
acquisition price was $1,150,000 in cash and 1 million common
shares of the Company. AK Drilling operates primarily in the
mineral exploration and water drilling industry. At June 30,
2001, the Company owed the shareholder of AK $628,000 (December
31, 2000 - $768,000) of the cash portion of the purchase price.
AK Drilling's offices are located in Ramsay, Montana and it has
projects throughout the United States and in Peru.  Peru's
operations are being conducted by AK Drilling's subsidiary, AK
International, S.A..  Payments of $140,000 were made during the
first half to the former shareholder of AK Drilling.

On April 26, 2000 the Company acquired Stothert from its
shareholders in consideration for $814,300 in cash and 227,000
common shares of the Company. At June 30, 2001, the Company owed
the Stothert shareholders $546,300 (December 31, 2000 - $546,300)
of the cash portion of the purchase price. Stothert is a
Vancouver based company providing engineering, construction and
project management services for the power, pulp and paper,
industrial minerals, forestry and environmental industries.  It
was established in 1966 and employs professional engineers,
managers and operations specialists.  Stothert provides a full
range of services including feasibility studies, detailed
engineering, project management services, turnkey supply and
construction, operations and training services, technical audits
and due diligence.  It has carried out industrial projects in
over 60 countries.

On August 16, 2000 the sole stockholder of Passant Acquisition
Corp. ("Passant"), a Nevada corporation, sold his interest to the
Company for $50,000 in cash consideration and Gregory M. Wilson
resigned as President, Secretary, Treasurer and Sole Director and
Terry Kirby became a Director, President, Secretary, Treasurer.
Pursuant to the Agreement and Plan of Reorganization dated as of
August 16, 2000 between the Company and Passant, all of the
outstanding shares of common stock of Passant were exchanged for
the sum of $50,000.

During the first half, the Company was financed through advances
from related parties of approximately $105,000. In addition, the
Company settled debts of $1,479,925 by the issuance of stock in
the first quarter. 206,667 common shares were sold to raise
$75,000 in cash in the first quarter. Shares were also issued for
payments to contractors and employees, in addition to payments
for debts owed, for $1,276,000 during the first half. 210,000
common shares were sold during 2000 to raise $160,000.

On January 12, 2001, the Company entered into an option to
purchase Trisil Minerals Inc. (Trisil) subject to the Company's
evaluation of Trisil's properties and markets for Trisil's
products.  The option was open for 180 days and it was
subsequently expired.  The Company is in the process of
renegotiating with Trisil regarding a future potential purchase.

RESULTS OF OPERATIONS

The Company was not operating prior to December 31, 1999 and had
only incurred minimal start-up expenses as of that date. The
acquisitions of Stothert and AK Drilling were completed during
the second quarter in 2000. The two acquired companies results
are reflected in the consolidated financial statements from the
dates of acquisition.

Total revenues during the quarter ending June 30, 2001 were $1.6
million made up of $873,681 from drilling services and $719,684
from engineering services.  Total revenues during the quarter
ending June 30, 2000 were $1.6 million, comprising drilling
services revenue of $847,853 and engineering services revenue of
$796,684.

During the quarter, operating costs of $924,020 were made up of
$514,422 expenses in the drilling operations and $409,598 in the
engineering services.  Compared to the last year's quarter of
$886,992 (drilling expenses of $461,239 and engineering expenses
of $425,753), there had been a 4% increase in its operating
costs.  Gross profits for the drilling and engineering operations
were 41% and 43% respectively during the current quarter (46% and
47% respectively during last year's quarter).

The quarter reported general and administrative costs of
$1,304,149 compared to last year's $856,583, a 52% increase.  Of
the $1.3 million in the general and administrative costs this
quarter, $238,182 was related to salaries and benefits, $ 332,622
to consulting and management fees, and $218,734 to public
relations.  The Company incurred interest expense of $27,574 and
received interest income of $12,274 in the quarter ($28,367 and
$1,766 respectively in the same quarter last year).

The Company recorded a loss of $696,490 during the quarter
($383,878 in the same period last year). Drilling operations
resulted in a $34,302 profit in the second quarter ($90,155
profit in the same quarter last year) and the engineering
services operation resulted in a $37,367 profit ($128,361 profit
in the same quarter last year). The parent company recorded a
loss of $768,159 during the quarter ($602,394 loss in the same
quarter last year).

AK Drilling's operations in Peru generated sales of $214,575
during the quarter ended June 30, 2001 ($nil for the quarter
ended June 30, 2000) or 13.5% of total revenues.  Since the
quarter end, Peru's operations had slowed down substantially as
the major contract had been inactive.  As a result, there is
minimal risk associated with operating in Peru foregoing.

The results of the engineering and drilling operations are
expected to improve during the third and fourth quarters of the
year. The corporate entity will continue to be a cost center as
it undertakes to improve the debt and equity structure of the
Company and review additional acquisition opportunities.


LIQUIDITY AND CAPITAL RESOURCES

The working capital position of the Company at June 30, 2001 was
a deficit of $1,241,466.  This amount includes the loan payable
on investments of $1,174,300 which is in the process of being re-
structured. It is expected that the loans on investments will be
repaid from operating cash flows or from equity financings.

During the quarter, the Board of Directors approved the issuance
of 833,333 common shares to pay for services provided by various
outside contractors.

On June 22, 2001, the Company issued a $100,000 convertible
debenture together with a premium of $25,000. The Company must
provide a redemption notice to the holder by midnight of the
sixtieth day after the issuance date and repayment of the
principal and the premium within five days after that.  If there
is no redemption by the sixtieth day, the premium will be due on
the sixty first day after the issuance date.  At any time after
the sixty first day and before the second anniversary date of the
issuance date, the holder may opt to convert the debenture to
common stock at a conversion price which is the lesser of (a)
110% of the closing bid price for Company's common stock on the
trading day immediately preceding the Issuance Date, or (b) 80%
of the lowest closing bid price for Company's common stock during
the five (5) trading days prior to and including the conversion
date.

At December 31, 2000 the Company had working capital of $751,848,
before the current portion $511,581 of the long-term debt of
$1,435,048, the loan from a related party of $1,111,319, and the
debt owing to the shareholders of AK Drilling and Stothert which
totaled $1,314,300. Including these items in working capital,
there was a working capital deficiency of $2,185,353 at the end
of the year.

As at June 30, 2001, $1,306,911 of the $1,331,911 long-term debt,
which includes $529,967 of the current portion thereof, relates
specifically to AK Drilling. These loans are generally for and
secured by equipment purchases for items such as drill rigs and
haul trucks and carry interest rates which range from 7.5% to
10%. The related party loan is from a company related to the
president of the Company and it is non-interest bearing,
unsecured and payable on demand. The debt owing to the
shareholders of AK Drilling and Stothert is due and the Company
is in discussions with the shareholders to arrange a form of
repayment for these amounts which it expects to complete in the
second half of 2001.  The debt owing to the shareholders of AK
Drilling and Stothert are non-secured.

As the long term debt interest is borne by AK Drilling, the
related party debt carries no interest, and the debt owing on the
acquisitions are being reorganized, the Company can meet its
current obligations to continue operations. Financing will have
to be raised from other sources to repay the debt to the related
party and the debt owing on the acquisitions. The sources that
the Company is currently working on are Company cash flows and
equity offerings. Although there are no assurances that either of
these will be adequate to eliminate the Company's working capital
deficiency, the Company believes that such financings can be
achieved.

The most significant assets of the Company are the drilling
equipment operated by AK Drilling with an original cost base of
$3,087,929 (December 31, 2000 - $2,954,446), and the accounts
receivable of $824,783 (December 31, 2000 - $872,661) of which
Stothert accounts for $576,186 (December 31, 2000 - $471,278) and
AK Drilling accounts for $246,369 (December 31, 2000 - $389,969),
and other amounts account for $2,228 (December 31, 2000 -
$11,414). Goodwill of $1,016,016 was recorded on the two
acquisitions completed during 2000 and goodwill amortization of
$46,386 was recorded in the quarter (quarter ending June 30, 2000
- $32,855). The goodwill is being amortized over a five-year
period.

During 2000, the only equity financing which was completed was to
raise $160,000 from the sale of common shares at an average price
of $0.76 per share. The share price of the Company has declined
in the first quarter of 2001, as have most stock exchange
indexes, such that raising additional capital from the equity
markets is more difficult.

OUTLOOK

The Company believes its cash on hand and cash from operations
will be sufficient to maintain its present level of development
efforts over the next three months. However, the Company's
projections of future cash needs and cash flows may differ from
actual results. The Company plans to complete a private placement
of equity securities to fund possible future acquisitions and
working capital. The sale of additional equity securities or
convertible debt could result in additional dilution to the
stockholders. The Company can give no assurance that it will be
able to generate adequate funds from operations, that funds will
be available to the Company from debt or equity financings, or
that if available, the Company will be able to obtain such funds
on favorable terms and conditions. The Company currently has no
definitive arrangements with respect to additional financing.

Upon successful refinancing of the Company, the growth strategy
will continue with acquisitions in the industrial services
industry. The Company has identified acquisition targets and will
begin the process of completing such acquisitions later in 2001.
The target acquisition companies will most likely be similar to
those acquired in 2000 in terms of size, industry focus, and
profitability.

                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The  Company  is  not  a  party  to any  material  pending  legal
proceedings and, to the best of its knowledge, no such action  by
or against the Company has been threatened.

ITEM 2.   CHANGES IN SECURITIES

On  May 18, 2001, the Company issued 833,333 shares of its common
stock  valued at $0.27 per share to pay for services provided  by
various outside contractors.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No such matters were submitted during the most recent quarter.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

3.1  Articles  of  Incorporation for Global Industrial  Services,
     Inc. (incorporated by reference to the Form 10-QSB, filed on
     November 21, 2000)
3.2  Bylaws of Global Industrial Services, Inc. (incorporated by
reference to the Form 10-QSB, filed on November 21, 2000)

Reports on Form 8-K: None

                           SIGNATURES

Pursuant  to  the  requirements of Section 12 of  the  Securities
Exchange  Act  of  1934,  the Registrant  has  duly  caused  this
registration  statement  to  be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.



                           Global Industrial Services, Inc.



                           By: /s/ Terry Kirby
                              Terry Kirby,
                              President/Secretary/Treasurer



                           Date: August 20, 2001